BYD Company (BYDDF) (BYDDY) delivered a show-stopping Q1, with profit doubling year-over-year. Net income hit RMB 9.16 billion ($1.26 billion), fueled by soaring electric vehicle sales. But while the bottom line impressed, revenue fell short of lofty forecasts. Analysts expected RMB 179.66 billion ($24.78 billion), yet BYD posted RMB 170.36 billion ($23.38 billion). That miss surprised many, given the EV giant delivered in key segments.
BYD Q1 EPS Surpasses Consensus Expectations
Let’s talk EPS, because that’s where BYD shined brightest. The company posted earnings per share of RMB 3.12 ($0.43), easily beating the consensus forecast of $0.35. BYD’s aggressive pricing strategy has been a major lever here. By keeping costs competitive while still rolling out tech-heavy models, margins held up better than many expected. That strong EPS performance marked a significant jump over last year’s same-quarter results.
BYD Gains Market Share with Aggressive Pricing and Tech
In China, BYD continues to outpace its rivals. Domestic market share hit 13.6% in Q1, nudging past Volkswagen’s 12.1%. The company’s strategy of offering its advanced “God’s Eye” driver-assistance tech as standard is a big part of this play. And then there’s the super-charging platform that slashes charging times. That mix of affordability and innovation has forced competitors like Geely and Toyota to rethink their smart EV pricing.
But tariffs still loom large. With the U.S. maintaining a 25% duty on Chinese EV imports, and Europe probing Chinese subsidies, global expansion is far from smooth sailing. BYD, however, is pressing on, aiming to export 800,000 vehicles this year.
BYD Didn’t Mention any Share Repurchases this Quarter
One thing missing in BYD’s earnings report? Share buybacks. Despite strong profits and solid EPS growth, the company has yet to announce a fresh repurchase program. That could leave some investors hungry for more shareholder returns, especially given the market volatility surrounding Chinese EV stocks.
Investors Weigh Tariff Impacts and BYD Company’s Growth Path
BYD’s Q1 story is a tale of two halves. Earnings soared, beating expectations. But revenue missed, as trade tensions and tariffs continued to weigh. Still, BYD’s dominance in China and expanding global footprint keep it firmly in the EV race. For investors, the key question is whether BYD can keep steering ahead as rivals fight back and tariff headwinds mount.
Is BYDDF a Good Stock to Buy Today?
Analysts remain bullish on BYDDF stock, holding a Strong Buy consensus based on 11 unanimous Buy ratings. Over the past year, BYDDF has increased by more than 95%, and the average BYDDF price target of $63.87 implies an upside potential of 24% from current levels. These analyst ratings are likely to change following BYD Company’s results.
